Hiscox Re’s ILS operation unveils Bermuda SPI

Kiskadee Investment Managers, Hiscox Re’s insurance-linked securities (ILS) operation, has launched a Bermuda-based special purpose insurer.

Cardinal Re takes Kiskadee Investment Managers’ assets under management to over $600 million.

The special purpose insurer is wholly owned by Hiscox and managed by Kiskadee Investment Managers.

According to Hiscox, Cardinal Re is a “market ready platform able to quickly create sidecars and managed accounts in a segregated cell”.

It explained that Cardinal Re has been designed to transform collateralised re/insurance risk into a security more suited for capital market investors.

The first external investor cell was launched in July 2015, with the transformation of a portfolio of Hiscox insurance risk into a transaction supported by $55 million of external capital.

Jeremy Pinchin, chief executive officer of Hiscox Re, said: “The launch of Cardinal Re is the latest development in our Kiskadee offering and takes assets under management to more than $600million, in only its second year of operation.

“Cardinal Re, with its nimble and flexible segregated cell structure, can respond quickly and is an effective way for completing transactional deals where speed to market is critical. It offers additional opportunities for both investors and cedants alike to benefit from our growing Kiskadee family of insurance linked products, and reflects the growing confidence from investors to take both insurance and reinsurance risks.”